Is Kenvue, Inc. overvalued or undervalued?

As of 18 September 2024, Kenvue, Inc. has moved from a valuation grade of very attractive to very expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 21, an EV to EBITDA of 15.33, and a PEG ratio of 6.16, which are significantly higher than its peers. For instance, Kimberly-Clark Corp. has a P/E of 18.81 and an EV to EBITDA of 14.86, indicating that Kenvue is trading at a premium compared to this competitor.
In comparison to other major players, Procter & Gamble has a much higher P/E of 39.54, but it is also considered expensive, while Colgate-Palmolive is rated fair with a P/E of 40.09. The high valuation ratios of Kenvue suggest that investors may be pricing in excessive growth expectations. Additionally, while Kenvue has outperformed the S&P 500 over the past year with a return of 15.33% compared to 10.26%, the current valuation metrics indicate that the stock may not offer sufficient value at its current price of 21.37.